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Rent The Runway downgraded at Citizens JMP as cash burn increases

As previously reported, Citizens JMP analyst Andrew Boone downgraded Rent The Runway (RENT) to Market Perform from Outperform with no price target after the company reported in-line Q4 results, but guided to declining Q1 revenue and EBITDA while guiding to 2025 free cash flow losses of $30M-$40M. Along with citing balance sheet risk as Rent the Runway invests in 2025, the firm awaits greater confidence that subscriber growth can accelerate before returning to a more positive rating on the shares.

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